Rising densities of human settlements, migration and transport to reduce distances to market, and specialization and trade facilitated by fewer international divisions are central to economic development. The transformations along these three dimensions density, distance, and division are most noticeable in North America, Western Europe, and Japan, but countries in Asia and Eastern Europe are changing in ways similar in scope and speed. 'World Development Report 2009: Reshaping Economic Geography' concludes that these spatial transformations are essential, and should be encouraged. The conclusion is not without controversy. Slum-dwellers now number a billion, but the rush to cities continues. Globalization is believed to benefit many, but not the billion people living in lagging areas of developing nations. High poverty and mortality persist among the world's 'bottom billion', while others grow wealthier and live longer lives. Concern for these three billion often comes with the prescription that growth must be made spatially balanced. The WDR has a different message: economic growth is seldom balanced, and efforts to spread it out prematurely will jeopardize progress. The Report: documents how production becomes more concentrated spatially as economies grow. proposes economic integration as the principle for promoting successful spatial transformations. revisits the debates on urbanization, territorial development, and regional integration and shows how today's developers can reshape economic geography.

'A Development Emergency', the title of this year’s 'Global Monitoring Report', the sixth in an annual series, could not be more apt. The global economic crisis, the most severe since the Great Depression, is rapidly turning into a human and development crisis. No region is immune. The poor countries are especially vulnerable, as they have the least cushion to withstand events. The crisis, coming on the heels of the food and fuel crises, poses serious threats to their hard-won gains in boosting economic growth and reducing poverty. It is pushing millions back into poverty and putting at risk the very survival of many. The prospect of reaching the Millennium Development Goals (MDGs) by 2015, already a cause for serious concern, now looks even more distant. A global crisis requires a global response. The crisis began in the financial markets of developed countries, so the first order of business must be to stabilize these markets and counter the recession that the financial turmoil has triggered. At the same time, strong and urgent actions are needed to counter the impact of the crisis on developing countries and help them restore strong growth while protecting the poor. 'Global Monitoring Report 2009', prepared jointly by the staff of the World Bank and the International Monetary Fund, provides a development perspective on the global economic crisis. It assesses the impact on developing countries—their growth, poverty reduction, and other MDGs. And it sets out priorities for policy response, both by developing countries themselves and by the international community. The report also focuses on the ways in which the private sector can be better mobilized in support of development goals, especially in the aftermath of the crisis.

Output gap estimates are subject to a wide range of uncertainty owing to data revisions and the difficulty in distinguishing between cycle and trend in real time. This is important given the central role in monetary policy of assessments of economic activity relative to capacity. We show that country desks tend to overestimate economic slack, especially during recessions, and that uncertainty in initial output gap estimates persists several years. Only a small share of output gap revisions is predictable ex ante based on characteristics like output dynamics, data quality, and policy frameworks. We also show that for a group of Latin American inflation targeters the prescriptions from typical monetary policy rules are subject to large changes due to output gap revisions. These revisions explain a sizable proportion of the deviation of inflation from target, suggesting this information is not accounted for in real-time policy decisions.

New edition of Environmental Problems in Third World Cities Cities in Africa, Asia and Latin America contain some of the world's most life- and health-threatening human environments. Environment-related diseases and injuries cause millions of preventable deaths each year. In many squatter settlements, children are 40 to 50 times more likely to die before the age of five than they would be in Europe or North America and most such deaths are environment-related. Many cities also cause serious environmental degradation to their surroundings and increasingly contribute to global warming. This updated and much expanded edition of the classic Environmental Problems in Third World Cities describes environmental problems and their effect on human health, local ecosystems and global cycles. It points to the political causes that underpin many of these problems - including ineffective, unaccountable governments, and aid agencies' reluctance to work with the urban poor. It also highlights innovative solutions such as: * High-quality, low-cost homes and neighbourhoods developed by urban poor groups working with local non-governmental organizations * Local Agenda 21s developed by municipal governments in partnership with community organizations.* In their analysis, the authors show that cities can meet sustainable development goals. There are practical, affordable solutions to their environmental problems, but most of these depend on more competent and accountable city governments and on more support for low-income households and their organizations. The book also outlines the changes needed international aid agencies to support this. PRAISE FOR THE FIRST EDITION 'It's rare to encounter a work as authoritative and accessible as this. It is a mine of useful information from cities in every corner of the Third World, which does not shy away from the immensity of the problems, but says as much about the solutions to them as about the problems themselves' Jonathon Porritt 'Well written and very accessible' The Geographical Journal 'Of value to students, teachers, practitioners, policy makers and aid agencies' Third World Planning Review 'A valuable resource for understanding the underlying problems[this book offers] practical alternatives' Cities International.